Bangkok--12 Feb--Five W&H Communication
- Solid business outlook driven by strong backlog of build-to-suit industrial development, demand for ready-built factories and warehouses, higher lease income from commercial properties and gains from the sales of industrial land and planned divestment of industrial property assets to FTREIT.
- Demand for prime industrial assets remains strong with robust assets under management (AUM) occupancy rate of 82%.
- FPT targets not less than 3 billion baht of industrial property assets to FTREIT.
- FPT's 1Q/2020 revenue was 4,609 million baht while net profit was 308 million baht, driven by solid growth in recurring income from its industrial and commercial property businesses.
Frasers Property (Thailand) Public Company Limited ("FPT"), a leading provider of integrated real estate platform, is upbeat about its business outlook for its Industrial and commercial property businesses.
Mr. Sopon Racharaksa, President of FPT, revealed, "Our industrial property portfolio maintains good growth momentum with AUM occupancy rate of 82%. Healthy demand for build-to-suit development driven by the expansion of existing tenants and new demand from fast moving consumer goods (FMCG), e-commerce and automotive industries will drive our business in the near future. We are confident of delivering our built-to-suit target of 150,0000 sq.m. this year."
FPT will also benefit from sales of industrial land in the Thailand's Eastern Economic Corridor area to Midea Group for development of Midea's largest intelligent technology for home appliances manufacturing hub outside China. The adjacent landbank that is still owned by FPT will be further developed to capture demand from Midea's eco-system. FPT also targets to complete its asset recycling exercise and sell at least 3 billion baht of assets to FTREIT later this year.
Industrial property business achieved strong performance in the first quarter of fiscal year 2020 ("1Q/2020") with +4.60% Y-o-Y increase in rental and related services revenue to 442 million baht. The occupancy rate of factories reached a five-year record high of 75%, up from 72% last year. The warehouse and logistics portfolio also achieved 86% occupancy rate, an increase from 81% over the same period last year.
Residential property business reported softer performance with 1Q/2020 revenue of 3,546 million baht, down 5.6% Y-o-Y. The impact was from the LTV measure which recently has been further relaxed. As of 31 December 2019, Golden Land Property Development Public Company Limited achieved a total pre-sales value of 7.1 billion baht from 58 active projects, with backlog awaiting to be transferred of 3,654 million baht.
Commercial property business saw a healthy revenue increase by +5.34% Y-o-Y from higher rental income of FYI Center & Samyan Mitrtown buildings.
On a consolidated basis, FPT's revenue for the first quarter of FY2020 ended 31 December 2019 was 4,609 million baht with recorded net profit of 308 million baht, lowered from the same period last year due mainly from absence of gain from sales of assets to FTREIT which was recorded last year. Normalised 1Q/2020 total revenue would have been reduced by a marginal of -3.6% Y-o-Y from the slowdown in the residential market.
"We are excited about FPT's solid start to the fiscal year 2020, with key segmental results in line with expectations. Going forward, FPT's ongoing execution of various value accretive projects, as well as potential overseas expansion and business synergy with Golden Land will ensure sustainable growth to our shareholders." Mr. Sopon said.
About Frasers Property (Thailand) Public Company Limited
Frasers Property (Thailand) Public Company Limited ("FPT"), a subsidiary of Frasers Property Group is a leading integrated real estate platform with multi-asset class expertise. FPT through its subsidiary, Golden Land Property Development Public Company Limited ("GOLD") has businesses in Industrial, Residential, Commercial and Hospitality property in Thailand.
FPT is also the sponsor and manager of Thailand's largest industrial REIT, Frasers Property Thailand Industrial Freehold & Leasehold REIT ("FTREIT"), which is focused on industrial and logistics properties in Thailand; while GOLD is a sponsor and property manager of Golden Ventures Leasehold Real Estate Investment Trust ("GVREIT"), a REIT focused on commercial properties. FPT, GOLD, FTREIT and GVREIT are listed on the Stock Exchange of Thailand.
For more information on FPT, please visit: frasersproperty.co.th
About Frasers Property Limited
Frasers Property Limited ("Frasers Property" and together with its subsidiaries, the "Frasers Property Group" or the "Group"), is a multi-national owner-operator-developer of real estate products and services across the property value chain. Listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST") and headquartered in Singapore, the Group has total assets of approximately S$38.8 billion as at 31 December 2019.
Frasers Property's multi-national businesses operate across five asset classes, namely, residential, retail, commercial & business parks, to industrial & logistics as well as hospitality. The Group has businesses in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced apartments and hotels in over 70 cities across Asia, Australia, Europe, the Middle East and Africa.
Frasers Property is also the sponsor of three real estate investment trusts ("REITs") and one stapled trust listed on the SGX-ST. Frasers Centrepoint Trust, Frasers Commercial Trust, and Frasers Logistics & Industrial Trust are focused on retail, commercial & business parks, and industrial & logistics properties respectively. Frasers Hospitality Trust (comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust) is a stapled trust focused on hospitality properties. In addition, the Group has two REITs listed on the Stock Exchange of Thailand. Frasers Property (Thailand) Public Company Limited is the sponsor of Frasers Property Thailand Industrial Freehold & Leasehold REIT, which is focused on logistics and industrial properties in Thailand, and Golden Land Property Development Public Company Limited is the sponsor of Golden Ventures Leasehold Real Estate Investment Trust, which is focused on commercial and hospitality properties.
The Group is unified by its commitment to deliver enriching and memorable experiences to customers and stakeholders, leveraging its people, knowledge and capabilities from across markets and property sectors, to deliver value in its multiple asset classes.
For more information on Frasers Property, please visit frasersproperty.com